Pension Mode SMSF

When you start a Transition to Retirement income stream (a pension while you still work) there are certain minimum amounts to withdraw. The maximum amount is 10% of the account balance.

With the GFC these minimum percentages was lowered. This enabled Members to preserve more capital in the SMSF. These minimum percentages are set out below:

Age of Recipient

Percentage Factor

Under 65


65 – 74


75 – 79


80 – 84


85 – 89


90 – 94


95 or more



1.       The 4% minimum is the normal percentages that apply for minimum pension draw down

3.       Minimum amount calculated on 1 July each year for the transition to retirement regular payment

4.       In the first year of  the account-based income stream, work out the minimum payment pro rata on effective days in the year

5.       Minimum amount to be rounded to nearest $10

6.       These minimum amounts are set out in the Superannuation Legislation (click on the link for the legislation)

To start a Pension or Transition to Retirement, Trustees need to minute this decision. Please see a template of a pension commencement minute below

To read more on Pension payments from an SMSF, read the ATO booklet here:

Pension Payments

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